Broker tips: Capita, Burberry, Carnival

21st May 2013 11:42

Jefferies has kept its 'buy' rating and 1,010p target price for outsourcing giant Capita after a 'significant contract win' announced on Tuesday with O2.Meanwhile, the broker highlighted press reports that suggested that Capita could be in line for a large contract with the Metropolitan Police. With policy outsourcing having recent ground to a halt, this news could re-open a "£2.0bn market opportunity", Jefferies said.Brand elevation has continued at Burberry, according to Nomura which has upped its target price for the luxury stock from 1,350p to 1,440p and kept a 'buy' rating after its full-year results came in above forecasts."With a strong performance in FY13, we see FY14 as an opportunity to leverage fragrance marketing and grow the category. We are becoming confident in the evolving Japan transition, given proven execution in China in the past three years."Shares in Carnival sunk on Tuesday morning after the cruise operator issued a profit warning, prompting Panmure Gordon to slash its forecasts and keep a 'sell' rating.The broker said that despite continuing downgrades, the shares have remained buoyant. "This appears nonsensical to us and the market must begin to appreciate there are structural as well as cyclical challenges to the Carnival business model."BC